- Strategic Energy Resources (SER) advises the assay results from recent drilling at Saxby Gold Project have returned worse than expected results
- The company received assay results from two of the three diamond drill holes, with best results of one metre at 8.37g/t gold from 650 metres
- Following these poor results, SER advised that the prospect was "not of sufficient scale to be economic"
- However, the company does believe the results show the fertility of the wider project which is located in northern Queensland
- Strategic Energy Resources share price has dropped over 30 per cent as a result of the poor results announced today
- The company has ended the week trading at 3.8 cents each
Strategic Energy Resources (SER) has advised that the assay results from recent drilling at its Saxby Gold Project has returned worse than expected results.
The company carried out a diamond drilling program at the project, which is based near Mt Isa, North Queensland.
SER has now received assay results from two of the three diamond drill holes, with best results including one metre at 8.37g/t gold from 650 metres.
Unfortunately, the company advises that these results show Saxby is "not of sufficient scale to be economic" given the depth.
"The drilling results are below expectations and have failed to extend the strike length of existing high-grade gold mineralisation at Saxby," SER stated.
"Given the depth of cover at Saxby of around 400 metres, the prospect is unlikely to be of sufficient scale to justify economic extraction," it continued.
It's not all bad news though, Strategic Energy did state that the program had sufficiently demonstrated the fertility of the area.
"The presence of significant high-grade gold intercepts associated with iron-oxide-copper-gold (IOCG) style hydrothermal alteration and Williams and Naraku Batholiths confirm the fertility of the region," the company stated.
Next steps for SER will be to review all of the results from the drilling program, so it can form a better understanding of the mineralisation system at Saxby.
Following the announcement of the poor results, Strategic Energy Resources have ended the week down 30.9 per cent.
The stock closed trading at 3.8 cents each.